UEEX started publishing the Monthly Base Load Electricity Price Index
The Ukrainian Energy Exchange (UEEX) has begun publishing the Monthly Base Load Electricity Price Index, the press service reports.
To stabilize prices across the Ukrainian electricity market, caused by the high price volatility of the day-ahead market (DAM), measures were taken to move away from price-setting based on the DAM. Corresponding amendments to the legislation, allowing forming a reliable indicator of electricity prices in Ukraine based on the price on the market of bilateral agreements (BAM), which is the basis of the electricity market.
The Ukrainian Energy Exchange presented to the market the price index of the BAM, which reflects the price of electricity baseload in the UESU for the next month (M+1). The index value is formed during the month preceding the calculated one, based on the weighted average electricity prices of the base load for the delivery period, covering the full calendar month M+1.
The calculation of the index includes all agreements concluded as a result of trading both in the specialized section and in the commercial one. The Agreed Methodology contains restrictions on the accounting of indicators that may distort the calculated values. These exceptions make it possible to form a more representative index of the bilateral contracts market.
As of September 2021, the value of the index was fixed at the level of UAH 1737.9/MWh (excluding VAT). The exchange publishes the current index value for October, which is updated based on the results of the trading days in September. The final index value is formed based on the results of the last trading day of the calendar month preceding the calculated one.
“Following European practice, the market of bilateral agreements is the pricing market. The market should rely on the prices of the BAM. The market reference price forms an important basis for the transactions of market participants. The UEEX made the first, but very significant step in this direction. Together with authorities and regulators, we are working to ensure high transparency of the BAM, to ensure price stability and high economic efficiency, "commented the launch of the index, Chairman of the UEEX LLC Exchange Committee Oleksii Dubovskyi.
To recap, an international expert has joined the UEEX.
Read also: How to improve the electricity trading strategy using the UEEX’s "calculator" of the weighted average prices
Tags: electricity, electricity market, DAM, price, agreement, modernization, auctions, electricity transmission, UEEX, supplier, Europe,
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